Iran, Afghanistan to sign new oil contract

Iran will boost exports of oil products, such as gas oil, gasoline and jet fuel, to Afghanistan according to a contract which will be signed today in Tehran.

Iran's Oil Minister Rostam Qasemi and Afghanistan's minister of commerce and industries, Anwar-Ul-Haq Ahady have been in talks since Saturday and they are expected to ink an agreement for exporting oil products from Iran to Afghanistan, the Mehr news agency reported.

In June, the two countries signed a memorandum of understanding for exporting 300,000 tons of oil products to the neighboring country in six months.

Gas oil will account for 70 percent of the exports, while gasoline and jet fuel will account for 20 percent and 10 percent, respectively.

The value of trade between Iran and Afghanistan stood at around $2 billion in the first 11 months of 2011, of which $1.5 billion was Iran's exports to the neighboring country, the IRNA news agency quoted Iran's industry, mine and trade minister, Mehdi Ghazanfari, as saying.